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Heterogeneous Labor and the Dynamics of Aggregate Labor Demand: Some Estimations Using Panel Data

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  • Bresson, G
  • Kramarz, F
  • Sevestre, P

Abstract

In this article the authors pay attention to the conditions that make an aggregate labor demand equation consistent with the underlying model at a more disaggregated level when heterogeneity exists across firms or across workers. It is argued that this consistency rests on the condition that employment evolves in the same direction in all firms and for all skill levels. Moreover, it is shown empirically that even though the above condition is satisfied, satisfactory estimations of an aggregate model can hide misspecification problems that become apparent when one also estimates the underlying disaggregated models.

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Bibliographic Info

Article provided by Springer in its journal Empirical Economics.

Volume (Year): 17 (1992)
Issue (Month): 1 ()
Pages: 153-68

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Handle: RePEc:spr:empeco:v:17:y:1992:i:1:p:153-68

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Cited by:
  1. Ide Kearney, 1997. "Shifts in the Demand for Skilled Labour in the Irish Manufacturing Sector: 1979-1990," Papers WP083, Economic and Social Research Institute (ESRI).
  2. Bargain, O. & Herwig Immervoll & Andreas Peichl & Siegloch, S., 2010. "GINI DP 1: Distributional Consequences of Labor-Demand Adjustments to a Downturn. A Model-Based Approach with Application to Germany 2008-09," GINI Discussion Papers 1, AIAS, Amsterdam Institute for Advanced Labour Studies.
  3. Gorter, C. & Hassink, W. & Nijkamp, P., 1996. "On the endogeneity of output in dynamic labour-demand models," Serie Research Memoranda 0019, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  4. Ali-Yrkkö, Jyrki, 2005. "Impact of Public R&D Financing on Employment," Discussion Papers 980, The Research Institute of the Finnish Economy.
  5. Vermeulen, Philip, 2006. "Employment stickiness in small manufacturing firms," Working Paper Series 0640, European Central Bank.
  6. Lapatinas, Athanasios, 2009. "Labour adjustment costs: Estimation of a dynamic discrete choice model using panel data for Greek manufacturing firms," Labour Economics, Elsevier, vol. 16(5), pages 521-533, October.
  7. Swati Basu & Saul Estrin & Jan Svejnar, 2000. "Employment and Wages in Enterprises Under Communism and in Transition: Evidence From Central Europe and Russia," William Davidson Institute Working Papers Series 440, William Davidson Institute at the University of Michigan.
  8. Alonso-Borrego, Cesar, 1998. "Demand for labour inputs and adjustment costs: evidence from Spanish manufacturing firms," Labour Economics, Elsevier, vol. 5(4), pages 475-497, December.
  9. Peter Dawkins, 1998. "Solutions to Australian Unemployment: Three Perspectives - Solutions to Unemployment and Avoiding the 'Diabolical Trade-off': A Discussion," RBA Annual Conference Volume, in: Guy Debelle & Jeff Borland (ed.), Unemployment and the Australian Labour Market Reserve Bank of Australia.
  10. Lucia Foster, 1999. "On The Sources And Size Of Employment Adjustment Costs," Working Papers 99-7, Center for Economic Studies, U.S. Census Bureau.
  11. Felix Fitzroy & Michael Funke, 1998. "Skills, Wages and Employment in East and West Germany," Regional Studies, Taylor & Francis Journals, vol. 32(5), pages 459-467.
  12. Olivier Bargain & Herwig Immervoll & Andreas Peichl & Sebastian Siegloch, 2011. "Distributional Consequences of Labor-demand Shocks: The 2008-09 Recession in Germany," CESifo Working Paper Series 3403, CESifo Group Munich.
  13. Gabor Korosi, 2002. "Labour Adjustment and Efficiency in Hungary," Budapest Working Papers on the Labour Market 0204, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  14. Robert Boyer, 1999. "Le lien salaire-emploi dans la théorie de la régulation. Autant de relations que de configurations institutionnelles," Cahiers d'Économie Politique, Programme National Persée, vol. 34(1), pages 101-161.
  15. Olivier Bargain & Herwig Immervoll & Andreas Peichl & Sebastian Siegloch, 2012. "Distributional consequences of labor-demand shocks: the 2008–2009 recession in Germany," International Tax and Public Finance, Springer, vol. 19(1), pages 118-138, February.

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